全球智库信息集成服务系统(G2TT): DP5137 Trade Costs, Trade Balances and Current Accounts: An Application of Gravity to Multilateral Trade

G2TT

来源类型	Discussion paper
规范类型	论文
来源ID	DP5137
	DP5137 Trade Costs, Trade Balances and Current Accounts: An Application of Gravity to Multilateral Trade
	Jacques MELITZ; Ronald MacDonald; Giorgio Fazio
发表日期	2005-07-23
出版年	2005
语种	英语
摘要	This paper studies advertising in vertically differentiated product markets with positive consumption externalities. In markets with consumption externalities, the value of the product to the consumer depends on the purchasing decisions of other consumers. In such markets, we show that firms will engage in advertising competition in order to convince consumers of their popularity only as long as they produce goods of similar quality. The firm with the lower quality product will have a greater incentive to advertise. If it is not the brand to provide the greater consumption externality it will have very low market share due to its low intrinsic quality. Hence, in equilibrium, the lower quality product will often be more popular. This provides an additional explanation for the empirical observation that in some markets high quality is associated with lower levels of advertising.
主题	Industrial Organization
关键词	Advertising Consumption externalities Coordination Product quality
URL	https://cepr.org/publications/dp5137
来源智库	Centre for Economic Policy Research (United Kingdom)
资源类型	智库出版物
条目标识符	http://119.78.100.153/handle/2XGU8XDN/534025
推荐引用方式 GB/T 7714	Jacques MELITZ,Ronald MacDonald,Giorgio Fazio. DP5137 Trade Costs, Trade Balances and Current Accounts: An Application of Gravity to Multilateral Trade. 2005.